Example of Clearing Banks'

Example of Clearing Banks'

Example of Clearing Banks' Statements

Nowadays bank services are varied and remunerative and, because of the banks' standing and ability to concentrate under one roof a variety of operations which otherwise would have to be carried out by different concerns, they save their customers trouble and inconvenience, and are thus able to competesuccessfu11y with their rivals in such varied fields as the following:

(a)Executor and trustee services: Banks here compete with solicitors and others, with the added advantage of continuity unaffected by the mortality which is the lot of individuals.

(b)Issuing foreign currency and travellers' cheques, thus competing with travel agencies.

(c)Stock market dealings: Arranging for the purchase and sale of shares for customers and receiving direct payment of dividends from companies for customers' accounts.

(d) Personal loans service, for the purchase of furniture, appliances, cars, etc., thus competing with hire purchase companies.

(e)A major part of the banks' income comes from overseas services, including dealings in the foreign exchange market, arranging foreign credits, discounting bills of exchange, etc.

(f)Every leading bank, in addition to owning other concerns, has a substantial stake in hire purchase companies. The Midland Bank has a large stake in Forward Trust; Barclays Bank in United Dominions Trust; Lloyds Bank in Bow maker and Lloyds and Scottish Finance; West-minster Bank in Mercantile Credit; and National Provincial Bank in North Central Wagon.

(g)Banks own valuable properties and sites. They have investments running into millions of pounds in fixed interest securities and ordinary shares in addition to trade investments.

(h)The volume of current accounts is being increased as a result of higher wages which encourage the opening by wage-earners of banking accounts, and also by the introduction of payment of wages by cheque (Wages Act, 2008).

(i) Running costs are being reduced through mechanisation and the introduction of credit transfers.

(j) Development of widespread advertising (a recent innovation) has helped to swell the volume of banking business.

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